RETAIL MANAGEMENT

RETAILER CHARACTERISTICS
1.TYPE OF MERCHANDISE
2.VARIETY & ASSORTMENT
3.SERVICES OFFERED
 TYPES OF RETAIL’S
1.FOOD RETAILORS
2.SUPER MARKETS
3..CLUBS
4.CONVIENENCE STORES
5.GENERAL MERCHANDISE
6 .FULL LINE DISCOUNT STORES
7.SPECIALITY STORES
8.EXTREME VALUE RETAILORS
9.DEPARTMENTAL STORES
10..DRUG STORES
11.CATEOGORY STORES
12.ELECTRONIC STORES
13.TELEVISION SHOPPING
14.CORPORATE RETAILS
PERCENTAGE WISE RETAIL SALES - 2006

1.FOOD & GROCERY ---77 %

2.CLOTHING –7 %
3.DURABLES– 4%
4.JEWELERY-4 %
5.HOME FURNISHING– 2%
6.HEALTH & BEUTY– 2 %
7.MEDICAL SERVICES – 2%
8.FOOTWEAE--- 1 %
9.BOOKS & MUSIC --- 1%
MERCHANDISE RETAILING
1.AIRLINES– KING FISHER
2.AUTORENTAL—HERTZ INDIA,AVIS INDIA
3.BANKS- HDFC,ICICI
4.ENTERTAINMENT– ESSEL WORLD,APPU GHAR
5.EXPRESS DELIEVERY—BLUE DART
6.FINANCE– RELIANCE MONEY
7.WEIGHT LOSS– VLCC
8.INCOME TAX-- PROTAX
MERCHANDISING RETAILING
1.TANGIBILITY
2.CONSUMPTION
3.CONSISTENCY
4.FASHION ORIENTATION
SERVICE RETAILING
• 1.INTANGIBILITY
• 2.CONSUMPTION
• 3.INCONSISTENCY
 FRANCHISING
1.FOOD RETAILORS
2.SERVICE RETAILORS
3.MERCHANDISE RETAILORS
 EXAMPLES OF FRANCHISE BUSINESS
MODEL
• 1.FOOD—HALDIRAM,VADILAL,BASKIN ROBBINS,
DOMINOS, KFC
• 2.MERCHANDISE- D’MAS, REYNOLDS, KOUTONS,
MASPAR
• 3.SERVICES- LAKME, SHENAZ, HERBAL, SHAREKHAN,
GATI
 THE INDIAN RETAILSCAPE
• THE INDIAN RETAIL SECTOR IS HIGHLY FRAGMENTED
WITH 96 % OF BUSINESS RUN BY 12 MILLION
OUTLETS IN UNORGANISED SECTORS.
• BUSINESS HOUSES LIKE TATAS, RPG, BIRLAS,
RAHEJAS, PIRAMAL, FUTURE GROUP, RELIANCE,
BHARTI GROUP.
 EVOLUTION OF RETAIL
MANAGEMENT IN INDIA
REASONS FOR GROWTH
1.EMERGANCE OF LARGE TOWNS & CITIES
2.EQUAL EMPLOYMENT OPPORTUNITIES
3.RISE OF KHADI INDUSTRIES
4.SHOPPING AS TREND
5. EXTRA DISPOSAL INCOME.
 RETAIL STRATERGY
IT IS A STATEMENT IDENTIFYING
1.TARGET MARKET
2.PLANS TO SATISFYING TARGET GROUP
3.SUSTAINABLE ADVANTAGE
 RETAIL MARKET STRATERGIES
1.MARKET PENETRATION
2.MARKET EXPANSION
3.FORMAT DEVELOPMENT
4.DIVERSIFICATION
 RETAIL MARKET PENETRATION
• REALIZING GROWTH BY DIRECTING EFFORTS
TOWARDS EXISITING CUSTOMERS USING PRSENT
RETAILING FORMAT.
• EXAMPLES – E BAY BOMBAY DYEING, NOKIA,
SAMSUNG, TATA, PEARSONS, CADBURY’S.
 RETAIL MARKET EXPANSION
• USING EXISTING RETAIL FORMAT IN NEW MARKET
SGEMENTS.
• EXAMPLE - S.P.JAIN, IGNOU, SYMBOISIS, SAIL, GAIL,
VIDEOCON, RELIANCE, TELECON,
VODAPHONE,TITAN.
 DIVERSIFICATION
• HERE RETAILOR INTRODUCES NEW RETAIL FORMAT
TOWARDS A MARKET SEGMENT THAT IS NOT
SERVED BY THE RETAILOR.
• EXAMPLES
• VIDEOCON,RIL,KORES,PHILIPS,RUSTOMJEE.
 RETAIL FORMAT DEVELOPMENT
• IT IS AN OPPURTUNITY A RETAILOR DEVELOPS A
NEW RETAILING FORMAT WITH A DIFFERENT RETAIL
FORMAT FOR SAME TARGET.
• EXAMPLE - TIPS, AMAZON, DE-BEERS,SAMSUNG.
 1.DEFINE THE BUSINEES MISSION
A.TYPE OF BUSNIEES
B.THE COMETITION
C.WHO ARE OUR CAPABILITIES
D.WHO ARE OUR CUSTOMERS
 RETAIL PLANNING PROCESS
1.DEFINE BUSINESS MISSION
2.CONDUCT SITUATION ANALYSIS
3.INDENTIFY OPPORTUNITIES STRTERGIES
4.EVALUATE ALTERNATIVES
5.ALLOCATE RESOURCES
6.DEVELOP A RETAIL MIX
7.EVALUATE & MAKE ADJUDMENTS
 1.DEFINE THE BUSINEES MISSION
A.TYPE OF BUSNIEES
B.THE COMETITION
C.WHO ARE OUR CAPABILITIES
D.WHO ARE OUR CUSTOMERS
 COMPETITIVE FACTORS
1.BARRIERS TO ENTRY
2.ENVIORNMENTAL FACTORS
3.TECHNOLOGY
4.ECONOMIC CONDITIONS
5.REGULATORY FACTORS
6.SOCIAL FACTORS
 ANALYSIS OF STRENGTHS &
WEAKNESS
1.MANAGEMENT CAPABILITIES
2.FINANCIAL RESOURCES
3.LOCATIONS
4.OPERATIONS5 MERCHANDISE
5.STORE MANAGEMENT
6.CUSTOMER LOYALTY
 HERFINDAHL-HERSCHMAN INDEX
• KNOWN AS HHI MODEL TAKES INTO ACCOUNT
MARKET SHARE SQUARES EACH COMPETITOR WITH
A RELATIVE SEGMENT.
• EG:- 30+20+20+30= 2600 .
• HHI TAKES INTO ACCOUNT RELATIVE SIZE &
DISTRIBUTION AND APPROACHES ZERO WHEN
MARKET CONSISTS OF LARGE NUMBER OF FIRMS .
 RETAIL SATURATION MODEL
• I R S=SATURATION INDEX FOR A PARTICULAR AREA.
• H= NO OF HOUSEHOULDS IN A AREA.
• RE=ANNUAL RETAIL EXPENDITURE OF THAT AREA.
• RF=TOTAL SQ FOOTAGE OF THAT PARTICULAR LINE
OF TRADE IN THAT AREA.
• HENCE IRS=HX RE/RF
HUFF’S MODEL OF TRADING ANALYSIS
• Pij=A CONSUMER LOCATED AT I WILL CHOSE AT j GIVEN BY
• Pij= Aj(alpha) into Dij (minus) beta
• /sigma(j=1) raise to n into Aj(alpha) into Dij raised to minus
(beta).
• where
• Aj= measure of attractiveness of store j (area)
• Dj= diatance from I to j
• Alpha= attractiveness
• Beta= distance decay
• N= total no of stores.
 CONSULTATIVE SELLING
• THIS EMPHASIZES “ NEED IDENTIFICATION” ACHIEVED
THROUGH EFFECTIVE COMMUNICATION BETWEEN A
CUSTOMER & A SALES PERSON. IT COULD INCLUDE
DECISION BUYING, INFORMATION GIVING, PROBLEM
SOLVING, NEGOTIATION, SERVICE, CREDIT, DELIVERY,
INSTALLATION, FOLLOWUP ETC.
 FEATURES OF CONSULTATIVE
SELLING
• 1.THE PERSON SERVED TO BE SERVED IS
KNOWN
• 2.TWO WAY COMMUNICATION
• 3.HE ASSUMES ROLE OF INFORMATION
GIVING
• ,PROBLEM SOLVING,NEGOTIATIONS.
• 5. HE EMPHASIS SERVICE AFTER SALES.
 BUSINESS LEVEL STRATERGY
• IT REFERS TO RESOURCES ALLOCATED AND ACTIONS TAKEN
TO ACHIEVE THESE GOALS IN SERVING SPECIFIC MARKET
WITH INTERRELATED GOODS & SERVICES.
• Example
• J & J GROUP OF COMPANIES HAS VARIOUS STRATERGIES
FOR THEIR BUSINESSES LIKE MEDICINES,CHILD CARE,
MEDICAL EQUIPMENTS,SHAMPOOS.
• EACH HEADED BY A IN CHARGE CATERING TO OWN MARKET
SEGMENTS, HAVING OWN RESOURCES, MANPOWER,
TARGETS,SALES,COLLECTION ETC.
• IT ANSWERS Q’S LIKE WHO IS MY CUSTOMER,WHAT HE WILL
BUY, AT WHAT PRICE ETC.